Washington is expected to announce tax-credit rules on Friday (December 1) that will shape the US market for electric vehicles (EVs), a report by the Wall Street Journal said on Wednesday, adding that “the Biden administration’s guidance will likely block the subsidy for cars containing batteries, components or minerals made by state-owned Chinese companies.”
The news is important because buyers of new EVs won’t be able to claim a $7,500 tax subsidy if they get a car containing battery materials from a ‘foreign entity of concern’ under rules that seek to encourage auto supply chains in the US and push carmakers to rely less on dominant Chinese suppliers, the report said, adding that Chinese firms have been striking deals with Korean and Moroccan companies in hope that such arrangements will be permitted when the rules are revealed.
Read the full report: The WSJ.
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